00               CS FOR HOUSE JOINT RESOLUTION NO. 12(W&M)                                                                
01 Proposing amendments to the Constitution of the State of Alaska relating to the capital                                 
02 construction permanent fund and to the repeal of the budget reserve fund.                                               
03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  Article IX, Constitution of the State of Alaska, is amended by adding a new                          
05 section to read:                                                                                                        
06            Section 18.  Capital Construction Permanent Fund.  (a)  There is                                           
07       established as a separate fund in the State treasury the capital construction permanent                           
08       fund.  Money in the fund shall be invested so as to yield competitive market rates to                             
09       the fund.  Income of the fund shall be retained in the fund unless appropriated as                                
10       provided under (b) of this section.                                                                               
11            (b)  Money may only be appropriated from the capital construction permanent                                  
12       fund for construction and maintenance of facilities of the State or a subdivision of the                          
13       State.  Appropriations from the fund made during a fiscal year may not exceed five                                
14       percent of the average of the fiscal year-end market values of the fund for the first five                        
15       of the preceding six fiscal years.                                                                              
16    * Sec. 2.  Article XV, Constitution of the State of Alaska, is amended by adding a new                             

01 section to read:                                                                                                        
02            Section 30.  Budget Reserve Fund Transition.  (a)  On the effective date of                                
03       the repeal of Section 17 of Article IX, the unencumbered, unappropriated balance in                               
04       the budget reserve fund (art. IX, sec. 17) is transferred to the capital construction                             
05       permanent fund (art. IX, sec. 18).                                                                                
06            (b)  Notwithstanding Section 18(b) of Article IX, appropriations during each of                              
07       fiscal years 2007 - 2012 from the capital construction permanent fund may equal, but                              
08       not exceed, five percent of the year-end market value of the fund for the immediately                             
09       preceding fiscal year.  No appropriation may be made from the fund during fiscal year                             
10       2006.                                                                                                             
11    * Sec. 3.  Article IX, sec. 17, Constitution of the State of Alaska, is repealed.                                  
12    * Sec. 4.  The amendments proposed by this resolution shall be placed before the voters of                         
13 the state at the next general election in conformity with art. XIII, sec. 1, Constitution of the                        
14 State of Alaska, and the election laws of the state.